Deal #$2-$ $$68,000$ Loader

You want to buy a frontend loader for $$68,000.$

Five$-$year useful life and a $$6,800$ salvage value

Cost to operate of $$\frac{40}{?}$ hour and billable rate of $$\frac{25}{?}$ hour

$1,200$ Billable Hours per year

The company's MARR is $14\%$

Should they buy the piece of equipment?

#$4$

Using Net Present Value, does this purchase clear the Hurdle Rate? Yes $-$ No

What is the Net Present Value?

$+$$$3,221$

$+$$$2,108$

$-$$$1,729$

$-$$$2,674$

$+$$$1,897$